The NT Government is spending $1 million to address spending problems in the Health Department.

The Northern Territory Government has used a select and tender process to award the million dollar contract to KPMG without going through a public and competitive tender process.

The Territory's Health Department -which has a budget of $1.7 billion - operated at an $11 million deficit in the 2017-18 financial year.

It will spend $1 million on professional services from KPMG to run a reform program, known as the Return to Budget strategy, to improve the efficiency and effectiveness of its service delivery.

The department says $332,000 has been spent so far.

“KPMG was engaged by the Department of Treasury and Finance to assist with independent expert financial advice, as a firm with extensive experience in developing similar health services reform programs in other jurisdictions,” it said in a statement.

Deputy opposition leader Lia Finochiarro says the budget repairs should be done internally.

“The Department of Health is the Territory's largest agency with a $1.5 billion budget,” she said.

“[Deputy Chief Minister and Treasurer Nicole Manison] must justify to Territorians why a $1 million contract was awarded externally and why a budget strategy could not have been developed within Government.”